The vote on a radical shake-up of the way Co-operative group is run is "a momentous and defining moment" for the group, Co-op chair Ursula Lidbetter said.

Co-op group members have backed radical shake-up. Credit: PA Wire

These reforms represent the final crucial step in delivering the change necessary to return the group to health.
This will strengthen the society and enable us to move forward with the urgent work to rebuild the business and deliver on our renewed purpose, in the interests of all our colleagues and our millions of members and customers.

– Co-op chair Ursula Lidbetter

The changes to the group's governance were backed by its members following a landmark vote.

A radical shake-up of the way the Co-operative group is run has been approved by its members.

A general view of a Co-operative food store, in the Strand, central London. Credit: Nick Ansell/PA Archive

At a special general meeting in Manchester, the crisis-hit company said 83% of votes were cast in favour of proposals drawn up in the wake of last year when the group racked up £2.5 billion losses.

The plans include reform of the food-to-funerals group's board structure, with elected directors - including the likes of a plasterer, engineer and retired deputy head teacher - largely replaced by professional business people.

The new governance structure includes the creation of a smaller board of directors and a move to a one-member one-vote system.

The Co-op is to recruit a smaller board of 11 directors with "high standards of competence" as part of radical governance reforms.
The mutual will also establish a 100-member council to act as guardian of the group's values and to hold the board to account.

The changes are based on the four-point resolution proposed by Lord Myners and voted on by members at the special meeting in May.